Value added tax (VAT) is a consumption tax paid by the customer as part of the price of the service. Invoices made through UKKO.fi generally have to be charged VAT.
Invoices sent via UKKO.fi leave under the UKKO.fi Business ID, and therefore the VAT relief is not applied and VAT must generally be added to invoices.
Please remember to consider the share of VAT when pricing your services. Use the Light Entrepreneur's Income Calculator to help you. VAT processing is automatic: you will see the VAT portion when you create an invoice in the UKKO Light Entrepreneurship Service.
Most companies can deduct VAT in their own taxation, which is why the share of VAT is usually not a threshold for business customers to purchase work. In business-to-business sales, prices are usually shown net of VAT. (Instead, consumers will be notified of the price including the VAT portion!)
There are several different VAT rates in use in Finland. As a general rule, however, all work is subject to 24% VAT. You can find more information about exceptions in this article: Which VAT rate should I choose?
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